Ormat Technologies, Inc. (NYSE:ORA) has reported a series of stock transactions by executive Sharir Dafna, according to the latest filings with the Securities and Exchange Commission. The transactions, which took place on August 23, 2024, involved both acquisitions and disposals of the company's common stock.
Sharir Dafna, who serves as a director of Ormat Technologies, engaged in multiple transactions on the same day. The executive acquired 1,621 shares of common stock at a price of $53.16 each, totaling approximately $86,172. Additionally, a separate disposal transaction was reported, where Dafna sold 433 shares at a price of $74.91 per share, amounting to a total of $32,436.
In another set of transactions, Dafna disposed of 1,188 shares at a price of $72.52, with the total value of this transaction reaching approximately $86,153. Following these transactions, the executive's holdings in the company have changed significantly, reflecting the latest adjustments in their investment position.
Investors and market watchers often look to insider trading activity as a potential signal of an executive's confidence in the company's future prospects. The sale and purchase of stocks by company insiders can provide insights into their perspective on whether the stock is undervalued or overvalued at current market prices.
Ormat Technologies, headquartered in Reno, Nevada, operates in the electric services sector and specializes in geothermal and recovered energy power. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ORA.
The reported transactions are part of the routine disclosure of stock trades by company executives and directors. It is standard practice for such individuals to report their trading activities to the SEC to ensure transparency and compliance with regulations governing insider trading.
In other recent news, Ormat Technologies has made substantial strides in its operations and financial performance. The company has entered into two seven-year tolling agreements with Equilibrium Energy for energy storage facilities in Texas and a 15-year agreement with the City of Riverside for its 80MW/320MWh Shirk Battery Energy Storage System in Visalia, California. These agreements mark significant steps in Ormat's expansion within the energy storage market.
Additionally, Ormat has issued an additional $45.2 million in 2.50% Convertible Senior Notes due 2027, intending to form a single series with the existing notes. The company has also reported substantial financial growth, with total revenues rising by 21%, earnings per diluted share increasing by 25.5%, and a 14.4% growth in adjusted EBITDA.
Analysts from Oppenheimer have adjusted their price target for Ormat Technologies shares to $85.00, up from the previous target of $83.00, maintaining an Outperform rating on the stock. The company has also revised its CapEx budget for 2024 up to $550 million to $570 million due to increased demand for storage projects. These are recent developments at Ormat Technologies.
InvestingPro Insights
Ormat Technologies, Inc. (NYSE:ORA) has demonstrated a mix of financial metrics that could influence investors' perception of the company's value. With a market capitalization of $4.52 billion, the company showcases a solid size in the electric services sector. Despite recent insider trading activity, Ormat Technologies is trading at a high P/E ratio of 34.35, indicating that investors may expect higher earnings growth in the future relative to the company's current earnings.
InvestingPro Tips suggest that Ormat Technologies is trading at a low P/E ratio relative to near-term earnings growth, with a PEG Ratio over the last twelve months as of Q2 2024 standing at 0.84. This could signal that the company's stock might be undervalued based on its earnings growth potential. Additionally, Ormat has maintained dividend payments for 20 consecutive years, which may appeal to income-focused investors. The company's commitment to returning value to shareholders through dividends is further underscored by a dividend yield of 0.64% as of the last dividend ex-date on August 20, 2024.
When considering the company's revenue, Ormat Technologies has experienced a revenue growth of 16.43% over the last twelve months as of Q2 2024, suggesting a positive trajectory in its operations. This is complemented by a gross profit margin of 31.43%, which reflects the company's ability to maintain profitability.
For those seeking further insights, InvestingPro offers additional tips and metrics to help investors make more informed decisions. For instance, there are currently 5 more tips available on InvestingPro's platform that provide deeper analysis into Ormat Technologies' financial health and market position.
With the next earnings date scheduled for October 30, 2024, stakeholders will be keen to see if the company's financial performance aligns with the current market valuation and insider trading activities. These insights and more can be explored in detail by visiting InvestingPro.
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